Nvmc predicts continued growth in memory chip demand until 2028, cautions against overestimating AI investment risks

NVMC has issued an optimistic forecast, predicting that global demand for memory chips will continue to grow rapidly until 2028, despite concerns over AI investment prospects. The firm highlighted that the market is overestimating the risks of reduced capital spending by AI firms, citing that OpenAI and Anthropic saw a 507% revenue increase in Q3, with further growth needed to meet annual expectations. NVMC also noted that challenges faced by companies like CoreWeave are unlikely to halt overall AI investment, as existing infrastructure can be utilized by other operators. The report recommended Samsung and SK Hynix as key stocks, citing ongoing global data center expansion, with expected new capacity reaching 22.3GW this year and 31.5GW in 2024. NVMC expects demand for memory chips to outpace supply, supporting prices, and projects that the combined net cash of nine semiconductor firms will rise from $2.82 trillion in Q2 2024 to $20 trillion by the end of 2028.